Disney (DIS) reported results for its fiscal first quarter on Monday that beat forecasts, boosted by a record quarter in its parks business, while profits fell from a year ago amid higher costs across its business units.
The results come just hours after a Bloomberg report said Disney is close to naming Josh D’Amaro, who leads its parks and experiences business, as its next CEO.
The company reported adjusted earnings per share of $1.63 for the quarter, topping forecasts for $1.56, with revenue growing 5% to $26 billion, ahead of expectations for $25.7 billion, according to Bloomberg forecasts. Total operating income for the company tallied $4.6 billion in the quarter, down from $5.1 billion a year ago.
Disney’s experiences unit — which includes its parks and cruise businesses — and posted record quarterly revenue of $10 billion, with attendance at its parks in the US up 1% and spending per customer rising 4% during the quarter. The company warned that international visitors to its US parks would likely be a headwind in the current quarter.
Disney stock initially rose about 3% following the results, but was off 1.5% near 8:15 a.m. ET.
The company’s sports unit reported a 23% drop in operating income from a year ago due to higher costs for sports rights, including the NBA and college sports, as well as a $110 million hit from its carriage dispute with YouTube TV. Revenue for its sports unit was up 1% from a year ago to $4.91 billion.
Revenues in its entertainment unit, which includes its film studio, rose 7% to $11.6 billion, after strong box office performances from of “Zootopia 2” and “Avatar: Fire and Ash,” but higher costs weighed on profits for the unit, which fell 35% to $1.1 billion.
Disney also reported revenue for its streaming business, which is included in its entertainment unit, rose 11% to $5.3 billion.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].